Nonprofit Effectiveness Research Articles

Escaping the Vines of the Ivory Tower: Reflections of an Engaged Professor

Public administration faculty have an obligation to engage their communities to improve conditions and the efficiency and effectiveness of government and nonprofit organizations. Engagement is also important in transmitting to students the “craft” knowledge of the profession of public administration through applied projects, internships, case studies, and community-based projects. Furthermore, faculty develop professionally through engagement by gaining a deeper understanding of relevant theory and practice that can be shared in the classroom. Reluctance by faculty to invest time and energy in their communities because of traditional university biases toward more theoretical work can partially be addressed by wider dialogue on the benefits of engagement. This paper contributes to this needed dialogue by reflecting on how engagement has informed the teaching and understanding of public administration theory and practice as well as been a benefit to the agencies and communities served.

The Effectiveness of Boards of Directors in Nonprofit Organizations

This paper investigates if board diversity and expertise impact innovation and effectiveness of hospitality nonprofit organizations (NPOs). Both agency and resource dependency theories suggest that the presence of a diverse board increase organizational performance. This study explores the innovation and effectiveness strategies of NPOs. Sample represents some of the most popular NPOs. Results of the null hypotheses conclude that organizational innovation and effectiveness are affected by board diversity and expertise.

Giving to Women and Girls: An Emerging Area of Philanthropy

Philanthropy for women’s and girls’ causes is a growing area of interest among donors and fundraisers. However, beyond foundation giving, limited research has been conducted to understand who gives to women’s and girls’ issues and donors’ motivations for such support. Using the frameworks of collective identity and the social identification theory of care, we conducted a sequential mixed-methods study in the United States to investigate donors’ characteristics and experiences. Through a national survey, we find that women are more likely to give to women’s and girls’ causes and that age and income are the most significant determinants of this giving. In focus groups, donors report giving to women’s and girls’ causes based on three motivational themes: personal experiences of gender inequality, a belief that supporting women’s rights is beneficial for society, and the perceived effectiveness of nonprofit organizations, largely supporting the social identification theory of giving.

The effectiveness of rural versus urban nonprofit organisations in the Democratic Republic of Congo

The Democratic Republic of Congo (DRC) is a country with high natural resources, but it has suffered from decades of civil wars and social turmoil, being heavily aid-dependent. In the DRC, several Nonprofit Organisations (NPOs) are major players in fighting poverty and enhancing welfare. This research aims to analyse the effectiveness of small NPOs in improving poor peoples’ lives through health, education, and economic activities. Two NPOs working in the DRC, one in a rural and the other in an urban area, are compared by researching the aid sites and surveying 201 households (aid beneficiaries). Our case observations and the survey results facilitate analysing the mission accomplishment, effectiveness, and accountability of the NPOs although we admit that the DRC conditions make exact measurements difficult. Multivariate analyses are used to study the differences in aid impacts. There are significant differences in the beneficiaries’ perception of the NPO effectiveness in improving health while no significant differences in education impact were found. This is probably because both case NPOs have succeeded in getting a large proportion of the children of their area registered in the education centres created by the NPOs. Differences were observed in the accountability and reporting style of the NPOs.

Developmental Culture and Effectiveness in Nonprofit Organizations

ABSTRACTNonprofit organizations have historically been seen as a vanguard in U.S. civil society, supplying places and spaces for innovation and change to flourish. According to the Competing Values Culture Framework (CVCF), a developmental organizational culture, characterized by innovation and risk-taking, may help organizations respond to changes in their operating environments and be more effective at boundary-spanning activities, such as fostering external support, acquiring resources, and spurring growth. Despite its importance, the culture–effectiveness relationship has not been studied sufficiently in nonprofit organizations. The exploratory study described in this article examines the links between developmental culture and nonprofit organizational effectiveness. Results suggest that nonprofit executive directors see organizational culture as more than a phenomenon to be experienced. Specifically, findings indicate that executive directors perceive there to be a positive and significant relationship between developmental culture and how effective their organization is at performing boundary-spanning activities. The practical and theoretical implications of this finding are discussed.

The Role of the Board of Directors in Building Successful Nonprofit Organizations

The Role of the Board of Directors in Building Successful Nonprofit Organizations John Lipinski, PhD; Jeananne Nicholls, DBA Abstract The effectiveness of nonprofit organizations is dependent on strong board leadership. This paper lays the foundation for new theories that will help build stronger organizations. Given the importance of nonprofit organizations in today’s economy, it is imperative that we do everything we can to increase their effectiveness. Full Text: PDF DOI: 10.15640/jmpp.v4n1a1

Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations

This case study investigates the criteria for organizational effectiveness in non-profit organizations (NPOs) with the aim to determine how the elements of sustainability fit within the criteria. To achieve this, the study utilized the research questions: “what criteria do NPOs use to evaluate their effectiveness?” and “how is sustainability embedded in NPO effectiveness?” The research design was interpretivist, adopting focus group interviews to obtain data. Specifically, two focus group interviews were held with the top management of an NPO which revealed that both financial and non-financial criteria were equally essential for NPO effectiveness. This finding is consistent with the literature, although it contradicts the initial assumption of the study that NPO effectiveness was based more on non-financial criteria than financial criteria. The study also found that the effectiveness of an NPO should be viewed in two ways: firstly, “the full achievement of its mandate” and, secondly, “the ability to run business projects to cover cost.” It also emerged that both the ability to cover costs and the achievement of a mandate should be done in a sustainable manner (a sustainable manner is seen as one that is harmonious with the natural and the socio-political environment). The results of this paper present a practical case for the management of NPOs by reiterating that the full achievement of the NPO mandate and the successful running of social projects to generate funds for sustainability are key elements of effectiveness. Given the essential role that NPOs play in developing countries, this study has provided the foundation for more widespread enquiry into the sustainability and effectiveness of NPOs.

Enforcing Downward Accountability for Nonprofit Effectiveness: A Case Study of Malaysian NGO

The paper aims to examine the influence of three main downward accountability approach; information disclosure, participation mechanism, and complaints procedures on the external and internal effectiveness of nonprofit organizations in Malaysia. This study also seeks to provide a comprehensive measurement of downward accountability. A random sampling and a structured questionnaire survey were employed in approaching 300 staffs of 30 nonprofit organizations located in Klang Valley area, Malaysia. A total of 209 responses were received (69.6% of the response rate). A descriptive analysis and a structural equation modeling by SPSS AMOS were used for data analysis and hypotheses testing. The results revealed that information disclosure and complaints procedures affect both external and internal effectiveness except for participation mechanism. The results provide a theoretical and methodological contribution to the study of nonprofit accountability and add value to the current research.

Nonprofit Organizational Effectiveness

In the face of increased accountability pressures, nonprofits are searching for ways to demonstrate their effectiveness. Because meaningful tools to evaluate effectiveness are largely absent, financial ratios are still the main indicators used to approximate it. However, there is an extensive body of literature on determinants of nonprofit effectiveness. In this study, we test the extent to which these assertions in the literature align with practitioner views. To increase the practical value of our comparative exercise, we create a self-assessment survey on the basis of the practices that find support in both academia and practice. This provides managers with a tool to assess the extent to which the identified practices are present in their organizations and with suggestions, which might lead to improvements in their effectiveness. Intermediaries can use the tool to provide better information to donors. Funders can use it in their selection of grantees, and capacity-building efforts.

The untapped potential of marketing for evaluating the effectiveness of nonprofit organizations: a framework proposal

Evaluation of the effectiveness of public benefit charitable nonprofit organizations (NPOs), both in terms of organizational performance and social impact, has been increasingly on demand. However, and due to different reasons, nonprofit effectiveness evaluation is still an unresolved issue in practice for many of those organizations. This paper reviews some of the most frequently used evaluation approaches with a double purpose in mind. First, to demonstrate that the application of marketing concepts, particularly those of market orientation and relationship marketing, has still a strong potential in the specific field of practitioner-oriented measurement and evaluation in NPOs. Many of the available frameworks are operations-, accounting and control-, or finance-driven; and therefore risk missing the market- and multi-stakeholder orientation that is crucial to improve the effectiveness of nonprofit organizations in pursuing social innovation, and also the centrality of mission and societal values for nonprofits. Second, the paper outlines and proposes a marketing-based and practitioner-oriented framework for approaching the evaluation of nonprofit organizational effectiveness. The main underlying thesis is that nonprofit effectiveness ultimately depends on the capacity of NPOs to become market oriented and to build and effectively manage relationships with relevant stakeholders over the long-term. The proposed framework combines two different aspects: the first measures the perceived value obtained by beneficiaries/customers, donors, partners and other relevant stakeholders; the second puts a value to the outcomes of those satisfactory relationships in terms of enhanced trust and commitment, ultimately leading to long-term impact.

Non-profit organisations and government’s pro-poor spending: the case of health and development in Gauteng

Globally, there is growing recognition of participatory public expenditure management (PPEM). PPEM is seen as the process whereby citizens and civil society organisations participate in the management of public expenditures. The adoption of PPEM is aimed at ensuring greater transparency, better targeting and tracking of resources, and increased overall responsiveness. The Gauteng Department of Health and Social Development (GDHSD) is committed to co-operative governance; this includes working with different spheres of government and civil society or non-profit organisations (NPOs).NPOs are required to have a governing committee to manage funds allocated by GDHSD. The committee has the capacity to hold the NPO management accountable for the resources (financial and material) entrusted to it by the GDHSD. The effectiveness of NPOs is challenged by poor attendance of board members at meetings, poor understanding of the board’s mandate and responsibilities and lack of experience amongst members.The paradigm of PPEM is still faced with challenges to ensure that significant flows of revenue are accounted for and used effectively for growth and poverty reduction. This study is divided into three components. The first section focuses on the background, the introduction and the conceptual framework. The second part focuses on the empirical study for deriving a benchmark for the South African NPO sector. The third section highlights good practices as well as governance-related challenges. Finally, for further consideration by the GDHSD, a series of recommendations is provided, focusing on how key domestic stakeholders can better contribute to successful participatory budgeting programmes.Keywords: Participatory public expenditure management, non-profit organisations, pro-poor spending, public finance, public financial management, early childhood development. Disciplines: Public Management and Administration, Public Financial Management

ACCOUNTABILITY AND THE PUBLIC INTEREST IN THE NONPROFIT SECTOR: A CONCEPTUAL FRAMEWORK

In all parts of the world, nonprofit organizations are under increasing pressure to demonstrate their congruence with the public interest. Even though the nonprofit sector’s operation has been traditionally associated with public virtues such as social capital, democracy, civic culture, and social integration, in recent years nonprofit organizations are required to prove that their public interest orientation still remains the case. As stated by Brody (2002, p. 472), ‘the nonprofit sector’s claims to exist for the public Connoly and Hyndman, 2003 good are no longer taken on faith’. Hence, nonprofit managers are increasingly required to credibly demonstrate their commitment to the public good through the use of effective accountability mechanisms. However, designing effective mechanisms of nonprofit accountability requires addressing two fundamental questions, ‘accountability to whom?’ and ‘accountability for what?’ (Stone and Ostrower, 2007, p. 423). Lack of clarity on both of these questions highlights the absence of blueprints or even general guidelines on how nonprofit accountability mechanisms should be designed and implemented. Indeed, the relevant literature emphasizes the highly political and contingent nature of accountability. The ‘accountability to whom?’ question implies the need for reconciling the expectations of multiple stakeholders, such as regulators, donors, managers, clients (e.g., Brown and Gaughlin, 2009). Brown and Moore (2001) recommend that the managerial implementation of accountability should depend on specific stakeholder constellations of various nonprofits, rather than on any universal definition of the public interest. The contingent nature of accountability is paralleled by the absence of any objective measure of nonprofit organizational effectiveness, as emphasized by scholars arguing from the multiple constituency perspective (Herman and Renz, 1999).

Mission, Strategies and Performance Evaluation in Nonprofit Organisations From a Stakeholder Management Approach

Nonprofit organisations (NPOs) have emerged as important not-for-profit private actors providing goods or services directly related to their explicit aim to create social value for the community in which they work. In order to maximize its social value creation, an NPO firstly has to define its mission according to stakeholders’ expectations, then it has to carry it out considering how it is defined by stakeholders, and finally it has to measure its performance and account for it related to how their stakeholders evaluate performance achievement. Since the mission achievement and effectiveness of NPOs are not easy to estimate and to assess, it follows that NPO effectiveness is always a matter of comparison, and that NPO effectiveness is a social construction, which depends on the evaluation given by the stakeholders who have an impact on and are impacted by the mission of the organisation. For these reasons, in the present working paper we assert that managers of NPOs have to use strategic stakeholder relationships, and not only adaptive or reactive approaches, in order to negotiate outcomes which reflect win-win situations for different stakeholders.

Initial evidence on whether use of professional fundraising services increases fundraising effectiveness

Abstract We provide initial evidence on whether use of professional fundraising services by US nonprofit organizations (NPOs) increases the effectiveness of NPOs' fundraising efforts. To a well‐tested model of organization‐level donations, we add an interaction term that captures the impact that professional fundraising fees an NPO incurs has on the effectiveness of an NPOs' spending on fundraising in raising donations. We find that professional fundraising fees has a significant positive impact on the effectiveness of fundraising efforts in raising donations for NPOs in the full, education, and health samples, but no impact for NPOs in the arts and human services samples. For NPOs in the full sample and NPOs in the education sample, one quarter of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. For NPOs in the health sample, one half of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. These results suggest that professional fundraising services significantly enhance the effectiveness of fundraising for these types of NPOs. While the results of this study seem to confirm the decisions of managers of education and health NPOs to utilize professional fundraising services, the results also suggest that managers of arts and human services NPOs may want to reconsider using professional fundraising services, at least the types of services they currently purchase and the way they currently utilize such services. Copyright © 2009 John Wiley & Sons, Ltd.

Advancing nonprofit organizational effectiveness research and theory: Nine theses

AbstractDrawing on the general literature on organizational effectiveness, the specialized literature on nonprofit organizational effectiveness, and recent research in the field, this article advances nine theses, or conclusions, about the effectiveness of public benefit charitable, nonprofit organizations (NPOs). NPO effectiveness is (1) always comparative, (2) multidimensional, (3) related to board effectiveness (but how is not clear), (4) related to the use of correct management practices but not in any simple “best practices” way, and (5) a social construction. Furthermore, (6) it is unlikely that there are any universally applicable best practices that can be prescribed for all NPO boards and management, (7) organizational responsiveness is a useful organizational‐level effectiveness measure, (8) distinguishing among types of NPOs is important and useful, and (9) level of analysis makes a difference in researching and understanding effectiveness. The article concludes by considering implications for organizational practice, boards and governance practices, program evaluation, including program outcomes assessment, and capacity building and capacity builders.

Municipal Support for Social Entrepreneurship

This study examines how cities help social entrepreneurship—the activity of private individuals and organizations taking initiative to address social challenges in their communities. Based on a national survey and in‐depth interviews among jurisdictions with populations over 50,000, the authors find that municipalities help social entrepreneurs by increasing awareness of social problems, and by helping them to acquire resources, coordinate with other organizations, and implement programs. Nearly three‐quarters of cities provide active or moderate support, which is positively associated with the perceived effectiveness of nonprofit organizations in their communities.

No Longer Unmeasurable? A Multidimensional Integrated Model of Nonprofit Organizational Effectiveness

Few topics in nonprofit research and practice have received greater attention in recent years than organizational effectiveness. In spite of this intellectual interest, little consensus has emerged, either theoretically or empirically, as to what constitutes organizational effectiveness and how best to measure it. In this article, we introduce a multidimensional and integrated model of nonprofit organizational effectiveness (MIMNOE). The model captures two prominent dimensions of organizational effectiveness, management effectiveness and program effectiveness. In addition, to illustrate how this framework can be used empirically, the article proposes a method of analysis that exploits the interrelationships between the multiple dimensions in the model. MIMNOE is useful for both scholars and practitioners because it requires attention not only to program outcomes, but also equally to the factors that influence those outcomes.

Doing Things Right: Effectiveness in Local Nonprofit Organizations, A Panel Study

This study investigates whether nonprofit organizational effectiveness is judged consistently by differing constituencies and whether changes in board effectiveness and overall organizational effectiveness (judged by differing constituencies) are the result of changes in the use of practices regarded as the “right way” to manage. The results show that different constituencies judged the effectiveness of nonprofit organizations differently, at both periods; that a change in the use of correct board practices over time, controlling for board effectiveness at time 1, was not related to board effectiveness at time 2; and that a change in the use of correct management practices, controlling for organizational effectiveness at time 1, was not related to organizational effectiveness at time 2, except for board members. Implications of the results are considered. Claims about best practices for nonprofit boards and organizations must be evaluated more critically. Finding the right fit among practices is more important than doing things the “right way.

Toward a Theory of Limited Nonprofit Organizational Effectiveness

Toward a Theory of Limited Nonprofit Organizational Effectiveness

Governance of Nonprofit Leisure Organizations

This paper presents an overview of nonprofit governance models and illustrates how these models could be adapted for the context of nonprofit leisure organizations. Governance models examined include Houle’s traditional model, Carver’s policy governance model and an Executive led model. To ensure the most appropriate governance frameworks are in place to enhance the effectiveness of nonprofit leisure organizations, this paper explores the contingency issues of categorizing nonprofit leisure organizations on the basis of inclusion of executive and volunteer involvement and the continuum of organizations from public benefit to member benefit.